Deloitte Announces Fast 500
By Jessica Rivchin
Deloitte & Touche USA has released its annual Deloitte Technology Fast 500, an annual ranking of the fastest-growing technology, media, telecommunications and life sciences companies in North America. Topping the list is Occam Networks, a California-based voice and data solutions provider. Over the past five years, Occam experienced astounding revenue growth rates of 48,948 percent--leaping from revenues of $80,000 in 2001 to $39,238,000 in 2005.
According to Tony Kern, U.S. deputy managing principal of Deloitte's Technology, Media & Telecommunications (TMT) industry practice, there are several key trends shared by this year's top companies. "This year, for the first time, Canadian companies account for half of the top 10. Also, Canada is the region with the largest average growth rate for its companies, with an average percentage growth of 3,876 percent."
Kern also notes that software companies comprise the biggest percentage of the complete list (at 36 percent). "We've noticed that communications/networking companies grew faster than any other technology industry sub-sector." Kern adds that four of the top 10 companies, including Occam, are in this arena, which grew an average of 3,778 percent over the past five years.
While this year is Occam's very first time on the list, five of the top 10 companies have appeared on previous Fast 500 rankings, including Westport Innovations, NewMarket Technology, Angiotech Pharmaceuticals, I-trax and Imaging Dynamics Company. "This is unusual, as it means that they've had to keep up the fast growth," says Kern.
Also affecting the ranking is an ever-increasing amount of competition, with sophisticated technology becoming more pervasive, explains Kern. "To be successful in an increasingly competitive landscape, companies have to be better, smarter and more innovative than in the past. Given the competition and tightening of discretionary spending, this year's growth rates are even more impressive even though they have slowed from previous years--which also reflects an ongoing maturation of the TMT industry."